Australia’s financial crime watchdog on Friday launched a cryptocurrency task force to identify and penalize crypto ATM providers violating anti-money laundering laws.
AUSTRAC said the task force aims to ensure digital currency exchanges (DCEs) offering crypto ATM services meet minimum standards. The initiative seeks to enforce strong practices to prevent these machines from being used for scams, fraud or criminal transactions.
Under the AML/CTF Act 2006, DCEs, including crypto ATM providers, must register with AUSTRAC. Additionally, they are required to monitor transactions, verify customer identities (KYC), report suspicious activities (SMRs) and file threshold transaction reports for cash transactions of $10,000 or more.
“Cryptocurrency ATM providers need to ensure they are complying with their money laundering obligations and are reducing the risks of crime,” he said. “If they’re ignoring those obligations they risk being subject to significant financial penalties and AUSTRAC won’t hesitate in taking action.”
AUSTRAC CEO Brendan Thomas said the agency will implement measures against operators who violate the regulations.
AUSTRAC has registered about 400 digital currency exchange providers so far. Among these, only a few operate crypto ATMs. Yet Australia boasts around 1200 such machines, ranking third globally in terms of quantity.
“This is the first step in AUSTRAC’s focus to reduce the criminal use of cryptocurrency in Australia. We will be focusing on this industry over the course of next year.”
Earlier this year, Australian authorities uncovered a massive crypto scam targeting locals, affecting over 2,000 digital wallets. The scam used a tactic called “approval phishing,” which has stolen over $4b in crypto globally since May 2021.
Cryptocurrency adoption is rising quickly in Australia, with an estimated 31.6% of Australians having held or currently holding cryptocurrencies, including many owning NFTs.